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Some fire victims getting misinformation from insurance adjusters

Times-Herald (Vallejo, CA)

Nov. 21--Some of the out-of-state insurance adjusters brought in to help handle the thousands of claims in the aftermath of the Northern California wildfires, are giving some claimants incorrect information, Insurance Commissioner Dave Jones said in a news release.

In response, he "directed the California Department of Insurance to issue a formal notice to insurers, licensed public adjusters and admitted carriers to make sure all claims adjusters assigned to wildfire claims, including those not licensed in California, are properly trained on the California Unfair Practices Act, Fair Claims Settlement Practices Regulations, and all laws relating to property and casualty insurance claims handling."

On Oct. 13, Jones declared an emergency situation in California due to the fires, which allowed insurance companies to use out-of-state adjusters to handle the large volume of claims, his office said.

Recently, the commissioner has received feedback from wildfire survivors, public officials, and others that some of the representations made by insurance adjusters conflict with California law, he said.

"Helping residents start the claims process in the face of so many losses and claims necessitated extraordinary actions," Jones state in the release. "While getting claims settled is a priority, it must be done according to the laws in place to protect policyholders through a difficult process. I issued this notice to remind insurers that claims adjusters must be properly trained and process all claims according to California law."

Several fire survivors provided examples of incorrect insurer statements, like incorrect time frame to collect full rebuilding costs.

"Policyholders were told they have between six and 12 months," Jones said. However, "in a state of emergency, as these fires were, policyholders have no less than 24 months under California law."

Some were also told that if they decide not to rebuild in the same location, they could not receive full replacement benefits. This also is false, Jones said.

"Instead, California law provides policyholders may choose to rebuild in the same location, a new location or purchase an already built home in another location," he said.

Some were also incorrectly told that additional living expense benefit would expire in 12 months, but under California law, in a state of emergency, policyholders have up to 24 months, Jones said.